It's to comply with President Trump's order barring investment in Chinese firms with ties to their military.
China on Saturday slammed the United States after the New York Stock Exchange (NYSE) move to delist three Chinese telecom companies and vowed to take necessary measure to protect Chinese "enterprises' legitimate rights".
China's largest offshore oil producer CNOOC Ltd could be most at risk as it's on the Pentagon's list of companies that it says are owned or controlled by Chinese military, according to Bloomberg Intelligence analyst Henik Fung.
This past Thursday, the New York Stock Exchange (NYSE) said that it would stop handling transactions involving the securities of China Mobile, China Unicom and China Telecom.
The China Securities Regulatory Commission said on Sunday that given their small amount of US-traded shares, the impact on the telecommunications companies would be limited and that they are well-positioned to handle any fallout from the delisting.
The commerce ministry said that the USA was "abusing national security and using state power to crack down on Chinese enterprises" and said the move was "not in line with market rules and logic, which harms not only the legitimate rights of Chinese enterprises, but also the interests of investors in other countries, including the US". All generate the entirety of their revenue in China and have no meaningful presence in the USA except for their listings here.
Still, the delisting of the three telecom giants reflects China's rise in power and wealth, as well as the growing estrangement between the world's two biggest economies. The companies' Hong Kong offices did not immediately respond to requests for comment on Friday. As 2020 progressed, the China-US economic conflict resumed, and was exacerbated by back-and-forth claims about the origins and spread of the coronavirus, and alleged US meddling in China's affairs in Hong Kong, Xinjiang and contested sea areas of the South China Sea. Last week, the Department of Commerce designated 103 major Chinese and Russian companies as "entities with military ties", restricting them from buying high-value United States products in areas including civil aviation, precision machinery, metallurgy, and instrument engineering.